29 Define Elimination Rules

After you define account and business unit summarization structures, you define the rules by which the system creates the stand along eliminating entries to the target company. The system processes eliminations of intercompany settlements.

You create the Elimination Specification table (F1017) to determine how to process and update the Stand Alone Elimination Header (F1001), File (F1002), and Category Codes (F1003).

Navigation

From Financial Reports (G10), choose Eliminating Entry Creation

From Eliminating Entry Creation (G1021), choose Elimination Specifications

To define elimination rules

On Eliminations Specifications

Figure 29-1 Elimination (Consolidation) Specifications screen

Description of Figure 29-1 follows
Description of "Figure 29-1 Elimination (Consolidation) Specifications screen"

  1. Complete the following field:

    • Elimination (Consolidation) Name

  2. For each unique combination of parent business unit and account summarization structure, complete the following fields:

    • BU TS (Business Unit Type Structure)

    • Parent Bus Unit

    • Act TS (Account Type Structure)

    • LD (Account Level of Detail)

    • From LT 1 (Ledger Type 1)

    • From LT 2 (optional)

    • From LT 3 (optional)

    • Rounding Factor (optional)

    • Subledger Detail (optional)

    • Curr Bals (optional)

    • Interco Field (optional)

  3. Press Enter.

Field Explanation
Consolidation Name The name of a saved elimination structure.
BU TS (Business Unit Type Structure) A user defined code (00/TS) that identifies the type of organizational structure, such as financial or responsibility. Each type of structure can have a different hierarchy.
Parent Business Unit The primary level in a business unit hierarchy. A parent in one hierarchy can be a child in a different hierarchy.
Act TS (Account Type Structure) A user defined code (00/TS) that identifies the type of account structure, such as financial or responsibility. Each type structure can have a different hierarchy.
LD (Account Level of Detail) A number that summarizes and classifies accounts in the general ledger. You can have up to 9 levels of detail. Level 9 is the most detailed and 1 the least detailed. Example:

3 – Assets, Liabilities, Revenues, Expenses

4 – Current Assets, Fixed Assets, Current Liabilities, and so on

5 – Cash, Accounts Receivable, Inventories, Salaries, and so on

6 – Petty Cash, Cash in Banks, Trade Accounts Receivable, and so on

7 – Petty Cash - Dallas, Petty Cash - Houston, and so on

8 – More Detail

9 – More Detail

Levels 1 and 2 are reserved for company and business unit totals. When using the Job Cost system, Levels 8 and 9 are reserved for job cost posting accounts.
FLT # (From Ledger Type) A user defined code (09/LT) that identifies a ledger type.
Rounding Factor A code that controls how amounts are to be rounded, that is, whether amounts are rounded to 100s, 1000s, and so on. Valid codes are:

Blank - No rounding (Default)

0 – Round decimals

1 – Round to the nearest 10

2 – Round to the nearest 100

3 – Round to the nearest 1000

4 – Round to the nearest 10000

5 – Round to the nearest 100000

6 – Round to the nearest 1000000

For example, the number 987,654,321.91 would be displayed as follows for each of the rounding factors:

Blank 987,654,321.91

0 – 987,654,322.00

1 – 987,654,320.00

2 – 987,654,300.00

3 – 987,654,000.00

4 – 987,650,000.00

5 – 987,700,000.00

6 – 988,000,000.00
Subledger Detail Flag that determines whether subledger detail should be carried forward in the consolidation or subledgers should be summarized together.

0 – Keep subledger detail in the consolidation (default)

1 – Summarize subledgers in the consolidation
Cur Bals A flag to denote that the system should post Account Balances table (F0902) records for this company by currency for accounts that are included in the account ranges specified in the AAI item PBCxx.
Interco Field A code that represents the field used to store the counterparty in intercompany transactions.

0 – Do not create eliminations. (This is the default.)

1 – The counterparty is stored in the Subledger field.

2 – The counterparty is stored in the Subsidiary field.